Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

F i n a n c i a l s t a t e m e n t s
2 Accounting policies (continued)
Financial instruments
The fair value of financial instruments is defined as the amount for which an asset could be
exchanged, or a liability settled between knowledgeable, willing parties in an arms length
transaction.
The financial instruments of the pension fund have to be classified into the following categories
under International Financial Reporting Standards (IFRS):
Financial assets and liabilities at fair value through profit or loss, these have two categories:
Designated, where assets and liabilities are measured at fair value with fair value changes through
profit and loss and; Held for trading, where financial assets and liabilities are held for the purpose
of selling in the short term for which there is a pattern of short term profit making.
Available for sale financial assets: any financial asset designated on initial recognition as
available for sale.
Loans and receivables: any financial asset with fixed or determinable payments not quoted in
the open market such as debtors.
Held to maturity investments: any financial asset which is intended to be held to maturity at
amortised cost.
Other financial liabilities measured at amortised cost using the effective interest rate.
DRAFT
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